Starbucks to take a dip into yogurt

Coffee kingpin to team up with France's Danone

Jul. 24, 2013

Starbucks on Tuesday announced a partnership with Danone to create yogurt products, which will be sold in Starbucks stores by 2014 and be available in major grocery stores by 2015. / Mark Lennihan/Associated Press

Written by

Bruce Horovitz

USA Today

Starbucks has big plans for you to enjoy a big spoonful of designer yogurt with its designer coffee drinks.

The coffee kingpin Tuesday announced plans to strategically align with French yogurt maker Danone and create yogurt products labeled with the Starbucks-owned Evolution Fresh brand.

The yogurt, dubbed “Evolution Fresh, Inspired by Dannon,” will be sold in Starbucks stores by 2014 and be in major grocery stores by 2015. The first co-created product will be a ready-to-eat Greek yogurt parfait.

Financial terms were not disclosed.

For Starbucks, the move is a serious and industry-rattling jump into the $6 billion yogurt business — the nation’s fastest-growing snack food.

For Danone, it widens the company’s market-leading presence in the U.S.

At 27.9 percent market share, Danone’s Dannon is ahead of General Mills’ Yoplait at 24.7 percent, according to IRI data. Danone also owns the Stonyfield brand.

Starbucks’ foray into yogurt is part of a strategic plan devised several years ago by CEO Howard Schultz to evolve the nation’s leading coffee chain into a better-for-you brand. Schultz wants Starbucks products to be as frequently purchased at a grocery store as a Starbucks store.

The plan puts the recently acquired Evolution Fresh brand into the spotlight and moves it firmly and strategically beyond the juice business.